Taiping Life Insurance Renewal Field Staff Cost Optimization Strategy Research

In August 2014, the State Council publicized Several Opinions on Accelerating the Development of Modern Insurance Service Industry, putting forward a series of major strategic plans on the reform and development of the insurance industry, enhancing the industry status of the insurance industry. Insurance industry, as an important pillar of China's economic development, is in a very important position.Taiping Life Insurance Co., Ltd. (referred to as:Taiping Life Insurance) as a top 10 of the country's large and medium-sized state-owned life insurance companies, full recovery of the domestic life insurance business in Shanghai since 2001, the new single premium and renewal premium income is also increasing year by year. In 2007, Taiping Life Insurance set up a special fee for the renewal of the premium department, while the allocation of the corresponding field staff, for the renewal of insurance premiums and customer service work. With the continuous improvement of renewal premium volume (In 2015, Renewal premium income accounted for 50% of the total premium income of the company) and renewal policy number, the field team's number from 331 in the early 2007, increased to 1542 by the end of 2015. The expansion of the renewal field team, in boosting the company to accelerate the pace of renewal fees, but also brought pressure to the company's field staff costs.This paper studies incentive pay mode from the perspective of transaction cost theory, with the renewal premium field staff of the Taiping Life Insurance as the research object, expounds the present situation of the human resources and the rising of the human cost of each branch. Combined with the goal of Taiping Life renewal line, using incentive compatibility theory, this paper gives the feasibility plan for the different levels of the branch, and provides the reference for the company to develop the renewal field staff cost optimization method. Through the comprehensive analysis and thinking about the current situation of the field staff and salary structure of the Taiping Life Insurance, in the proposed improvement measures and recommendations, this paper is hoped to play an important practical guiding significance to the Taiping group system and the same industry field staff cost management and control.